2019 McKinsey EMEA Data Summit in Barcelona. Culture—a firm base. So what to do? People create and sustain change. We now have 546 million users who have at least one app with us.”1 1.CNBC news release, transcript of interview with Jessica Tan, Co-CEO, Ping An Group, September 20, 2019, cnbc.com. Top-performing digital companies are also willing to dust off their metrics and think strategically about what types of measures and incentives will engender the outcomes they want. Please use UP and DOWN arrow keys to review autocomplete results. Customer-decision-journey analysis revealed that busy CEOs were more likely to engage if presented with targeted data that addressed company-specific issues. 2 However, ultimately the phrase “you get what you pay for” holds true, and only firms willing to truly commit to the investment needed will be able to pull off a digital transformation. Jochen Böringer is a partner in McKinsey’s Düsseldorf office, Brett Grehan is a senior partner in the Sydney office, Dieter Kiewell is a senior partner in the London office, Soenke Lehmitz is a senior partner in the Stamford office, and Philipp Moser is a consultant in the Melbourne office. Outperforming companies create digital strategies that are designed to make and shape markets, and they back those efforts with the necessary resources. They free up cash for investments in data, technology, and talent; they think big, they act fast, and they are prepared to adapt their stance as the market evolves. Advanced analytics can also help sales reps navigate a more crowded purchasing environment. Artificial Intelligence(AI) has three main components that will show its impact on the B2B digital transformation. Some, like Merck, have invested in innovation hubs centered near research and entrepreneurial hotspots to unearth promising research and to forge licensing or partnership arrangements. To make its digital strategy the de facto way of operating, GE consolidated each business unit under a chief digital officer. Increasingly, suppliers see digitization as an opportunity to restructure the value chain, especially when it comes to distribution (Exhibit 5). We use cookies essential for this site to function well. The pandemic has accelerated digital adoption across industries, resulting in technology service providers witnessing a sharp growth in digital deals. We strive to provide individuals with disabilities equal access to our website. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 1. The cross-functional team comprised customer experts, user-experience designers, supply-chain experts, data scientists, developers, and IT architects. They collaborate actively with external partners and use events like digital hackathons to shorten the learning curve. According to a study by Altimeter, The … Where will (or could) it come from in the future? [ Get answers to key digital transformation questions and lessons from top CIOs: ... For example, Zemmel says that McKinsey’s data shows that B2B remote selling is working: “It’s easier to schedule, more efficient than in-person, [and leads to] faster buying behavior.” No one expects in-person selling to go away, but it may be a smaller part of the mix than before. Learn more about cookies, Opens in new INTRODUCTION TRENDS FUTURE-PROOF CHECKLIST LEARN MORE TABLE OF CONTENTS Introduction Trends Future-proof Checklist Learn More 3 4 9 10 2. In the first year after launching its omnichannel strategy for retail and corporate clients, ING grew profit by 23 percent, increased its share price by 15 percent, and won EuroMoney’s “Best Bank” award.5 We interviewed thousands of patients from different age groups, countries, genders, and incomes; respondents had varying levels of digital savvy. To date, the most prominent BP Launchpad venture is Lytt, a technology start-up specializing in fiber optics to detect sand interference in offshore wells. > The ‘Four Ds’ of Digital Transformation according to McKinsey & Company. They are not only rapidly following as their customers are going online, but also dramatically transforming their marketing functions into digital- and data-driven machines that engage … They conceived, tested, and built the new model in less than 12 weeks. The move to digital has been a long time coming in the B2B space, and it has the … ing.world, “ING’s multichannel approach: anytime, anywhere,” interview with Nick Jue, Quarter 3, 2014, ingworld.ing.com. For instance, Chris guided a large bank through a digital and agile at-scale transformation, has led the DevOps for a number of leading banks in Europe, and helped build a new digital business for a flower distribution company by reinventing how flowers and plants are sold B2B using a digital … our use of cookies, and … The purpose of the Four Ds is to aid a company’s reinvention in order to find new, significant, and sustainable sources of revenue. They prioritize opportunities according to their potential value and develop a venture portfolio. Vestas, a wind-turbine manufacturer, knew from customer research that turbines could play a major role in driving down business costs, but most companies still saw them strictly as an energy-solutions provider, which was narrowing their market. 4. In a pilot, a margin increase of up to 50 percent was observed, while no volume was lost. Learn about They often treat overall strategy and digital strategy differently. We believe that it's a requirement for long-term success. Article Consumer decision making in healthcare: The role of information transparency. Our analysis of the practices of top performers indicates that the principal challenge is to identify the transformation path (or combination of paths) that suits a given company. tab. Eins oder Null, Ullstein … Article Virtual health: A look at the next frontier of care delivery. Unleash their potential. DQ leaders, on the other hand, strive to create an organizational structure that supports their digital transformation. Nontraditional players like Amazon Business and Alibaba are already cashing in on this trend by providing business buyers with simple and convenient digital marketplaces. In parallel, B2B players then need to be thoughtful about identifying and augmenting those capabilities that are critical to achieving scale. Experts from McKinsey & Company are advising the firm’s executive team on digital strategy and the Most B2B companies have not yet mastered the digital capabilities needed to operationalize customer-centricity—and that’s making them vulnerable. Digital Transformation: McKinsey’s Take. “BP recently created BP Launchpad as a business incubator,” AZERNEWS, May 10, 2019, azernews.az. We now have 30,000 developers. This will help them focus their resources and their funds on the most promising digital opportunities, instead of rushing down one pathway prematurely. Lytt analyzes sounds in wells to paint a picture of the well conditions. They use automated decision-support processes and other tools to link finance, accounting and ERP systems with customer, sales, and order data to generate a 360-degree view of the customer across the business. The secret to making it in the digital sales world: The human touch, Jordan Blum, “BP gets into the startup biz with its new Lytt company,”. Rather, the B2B companies that master these areas are generating 8 percent more shareholder returns and a revenue compound annual growth rate (CAGR) that is five times greater than the rest of the field. Strategic shifts like that are hard. When Dan Levin joined Box as COO, for example, he realized that most of the company’s customers paid on a month-to-month basis, which was hurting the company’s capital efficiency. The new generation of millennial decision-makers demand highly relevant and personalized experiences across every touchpoint, both offline and online. What is the degree of digital maturity of core commercial domains, from sales management to pricing and marketing? Taking advantage of that fact takes strong cross-channel integration. One Asian insurance company, for example, hosted an intensive jam session over a 48-hour period. 22. So Vestas partnered with Bloomberg BusinessWeek to hand deliver a series of custom 16-page inserts filled with company-specific data that spelled out tangible wind-energy benefits. But true B2B leaders go much further. The modern seller is a problem solver for their customers and may only ever engage with them in a digital only environment. 1. In our 2019 benchmarking study, we have identified four promising transformation pathways, or archetypes, that allow B2B companies to unlock digital growth potential (Exhibit 2): To prioritize pathways and identify the capabilities they need to invest in, companies should develop a clear understanding of the current and future economics of the business, asking questions such as: Based on the outcome of this exercise, companies can create what is sometimes referred to as the “value map” (Exhibit 3). (See sidebars, “BP’s Launchpad” and “Ping An case study: Digitally enabled growth,” for two companies successfully using this approach.). The new, data-driven approach allowed the company to reallocate significant resources from manual pricing management to growth initiatives. If the app flagged that procurement was likely to be engaged, reps could press a button and generate tailored punch lists and other add-ons designed to meet procurement specifications and simplify the RFP process for internal buyers. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Discover. 3 Staged as a friendly competition, it ended with teams delivering a model that went far beyond the original scope of the hackathon and effectively eliminated the need for processing claims. See also Jorchen Boringer and Dr. Tjark Freundt, “Kundenführung 4.0: Von Menschen und Maschinen,” CNBC news release, transcript of interview with Jessica Tan, Co-CEO, Ping An Group, September 20, 2019, cnbc.com. Please try again later. Digital transformation, whatever precise form it takes, is built on the internet and so, even in normal times, internet infrastructure needs to be robust. Video and live chat are the emerging stars of new go-to-market models. McKinsey’s Barr Seitz explains that digital transformation goes much deeper than … We believe we are at a digital inflection point, where B2B sales operations going forward will look fundamentally different from what they were before the pandemic. That involves identifying which skills need to be reallocated, what data and analytics resources are needed, and which customer opportunities require capabilities that need to be built, hired, or acquired. To identify the root causes of dissatisfaction and transform the customer experience, the company set up an agile studio. Leading B2B companies, by contrast, are at the forefront when it comes to deploying agile development practices and rapid experimentation. After an industrial company lost a major deal, for example, postmortem discussions revealed that the buyer’s procurement function wielded far more influence than the company realized. The study is carried out by McKinsey & Company on behalf of the Commission’s Directorate-General for … It also forces product development, marketing, sales, and IT to come together and understand how to use leading digital design practices, such as MVP, in a disciplined, customer-focused way. This is also why it can be pursued in parallel with other pathways, provided sufficient resources and funds are available. In our book, The Definitive Guide to B2B Digital Transformation, we deal more fully with the where, how, what and who steps for each of the three transformational shifts. How the Digital Transformation Transformed Your Sales Function. The challenge is to keep new businesses sufficiently close to the parent company for them to benefit from its critical mass, yet separate from the corporate hierarchy, in order to foster the entrepreneurial spirit of a start-up company. For established companies, the pressure to digitize business models and products has reached new intensity.McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.Ascending to that elite group is far from easy. tab. At the majority of the B2B companies we studied, organizational challenges can blunt the reach and effectiveness of digital initiatives. 6. They should be prepared to reinvent the way they serve their customers, either by redesigning the customer experience or establishing a direct channel. B2B seller interactions have moved to remote or digital McKinsey Only about 20% of B2B buyers say they hope to return to in-person sales. Systematic performance tracking needs to be in place to keep the efforts on track and make sure they having the … Flip the odds. Instead of trying to “do everything,” the company made a conscious choice to select a narrow set of sectors, following a rigorous four-step process: Using this approach, Ping An selected finance, real estate, healthcare, and automotive as its focus areas. Subscribed to {PRACTICE_NAME} email alerts. DQ leaders do it differently. According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. 2019 McKinsey EMEA Data Summit in Barcelona. They must also understand what … 1 ning to adopt customer-centric thinking, prompted by the consumerization of health insurance. Reinvent your business. A building-materials supplier improved its qualification rate, for instance, by using order histories of existing customers and analyses of prospective markets. As a result of this effort, the company’s customer satisfaction score increased by 24 percentage points, while throughput improved by 20 percent. Create a long list of opportunities, based on consumer needs and technological change, Rank opportunities according to current and future market size, Filter out opportunities dominated by competitors, Select opportunities that match the group’s strategic objectives and stand to benefit from Ping An’s core strengths. At an electronics manufacturer, for instance, marketers could tell when a prospect opened an email, but their customer-relationship management systems had no way of tracking how long a customer spent reading that email or what action they took next. Any process change creates a ripple effect across the wider organization, and particularly the commercial organization. November 12, 2019. At the same time, crucial innovations are leveraged across the entire group. Why digital transformation should be a strategic priority for health insurers Basel Kayyal, Sti eve Keyll, and Madhu Pawar Healthcare Systems and Services Practice . Rather than biting off a slew of digital improvements at once, B2B companies often get faster results by starting with small wins to build conviction and momentum—concentrating on areas where they have existing capabilities, clear objectives and strong leadership backing. But some B2B companies are breaking that mold and embracing an “all in” digital strategy. When held off to the side, digital strategies often splinter into smaller initiatives that are too diffuse to gain momentum and too limited in scope to make a material difference. 2. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The technology is already in use in the North Sea and in Azerbaijan. Most recently, Ping An has decided to set aside 1 percent of group revenue to finance start-up ventures that operate as autonomous entities. We'll email you when new articles are published on this topic. However, sitting and waiting is not an option. McKinsey & Company estimates that B2B digital leaders see five times more revenue growth than those not focused on digital transformation strategies. Research by McKinsey reveals 7 out of 10 B2B decision-makers will consider making fully self-serve or remote purchases of $50,000 and up. According to Ian Kavanagh, BP’s head of upstream modernization and transformation, BP is already saving billions of dollars thanks to the innovation. More than 90 percent of B2B buyers use a mobile device at least once during the decision process,3 Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. However, there are ways you can better understand the term ‘digital transformation’ and apply this in real life ways to your business. This group acts as venture capitalist and adheres to a staged funding approach. It’s not going to get any easier. hereLearn more about cookies, Opens in new Staff Writers 2017-02-21. version of the new process went live after 16 weeks. Digital is a central part of Almarai’s plans, with the firm eyeing a suite of intelligent technologies to optimise its operations, supply chains and customer processes. Our research … We use cookies essential for this site to function well. BP describes Launchpad as a “scale-up factory,” charged with a “mission to take disruptive technologies and business models and help grow them fast to become BP’s future business units, generating a significant portion of BP Group’s gross margin by 2025.” How can new technology be used to create additional value and pleasant surprises for customers? Most transformations fail. > The step-by-step approach towards digital maturity. These are McKinsey & Company’s ‘Four Ds’ of digital transformation outlined in a new report. To fix that, Box needed to get its prepay rate up to around 70 to 80 percent. For example, the introduction of a direct channel may be followed by the deployment of advanced analytics to drive commercial excellence across all channels. That targeted, data-driven campaign helped Vestas achieve a ten-times improvement in conversion rates. Effective presales activities—the steps that lead to qualifying, bidding on, winning, and renewing a deal—can help B2B companies achieve consistent win rates of 40 to 50 percent in new business and 80 to 90 percent in renewals.6 To crack the digital growth code, we have examined the practices of top performers. At most B2B companies, however, digital strategy is a sideshow. We feature rich case studies and best practices from companies including Maersk, Michelin, Adobe, IBM, Salesforce.com, Johnson & Johnson and Air Liquide – all businesses that are putting customers at the heart of their … Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. That doesn’t mean creating more complex and numerous performance indicators, but rather revisiting how the company measures progress and carving out a handful of metrics that can really move the needle. Many B2B customers now expect the same kind of convenience, speed, flexibility, and transparency they are used to from shopping on popular consumer platforms. During the transformation, the group created a new end-to-end tech stack, established a center of pricing excellence, and developed a new commercial playbook. The future of B2B customer experience can be summed up in two words: digital transformation. According to McKinsey, “Turning your company into a top quartile B2B digital player can increase revenue by 3.5%”. Drawing from online surveys of 229 U.S.-based B2B decision makers in a range of industries, including manufacturing, financial services, health care, and telecommunications, in companies having at least $25 million in revenue, The 2019 FPX Digital Transformation Study confirms this trend. Article From “wartime” to “peacetime”: Five stages for healthcare institutions in the battle against COVID-19. Data-driven pricing is among the most common applications in this area. The company was struggling with poor customer satisfaction and an erosion of the customer base. But those efforts have tended to focus on internal cost and process efficiencies and less on innovating around sales and the customer experience—and that’s where the real growth is. B2B companies have applied digital automation largely to internal processes rather than to those that are customer facing. You expect relevant offerings, value, and a delightful … Tanguy Catlin is a senior partner in McKinsey’s Boston office, where Candace Lun Plotkin is director of knowledge and Jennifer Stanley is a partner; Liz Harrison is a consultant in the Charlotte office. B2B players must contend with shrinking product shelf lives, greater price transparency, and a changing cost basis on the one hand while simultaneously growing the capabilities needed to create consumer-like experiences on the other, with personalized service and hassle-free purchasing across platforms and devices. Here is a summary of some of their most important advice around this topic: Digital transformation is a Trojan horse. Subscribed to {PRACTICE_NAME} email alerts. What does it take to create value from digitization in B2B? To understand how severe the … McKinsey & Company estimates that B2B digital leaders see five times more revenue growth than those not focused on digital transformation strategies. The average organizational maturity for B2B companies averaged just 27, putting them near the “laggard” range. Some call it the consumerization of B2B marketing: the use of digital technologies and techniques, pioneered by the likes of Amazon and Google, to engage customers online. Learn about Use different channels to serve different types of customers, from a portal for registered high-value customers to target offers or flagship e-stores on established B2B portals to reach bargain hunters and generate new leads. Initiatives are less likely to be anchored in customer needs and often falter from insufficient investment. Please click "Accept" to help us improve its usefulness with additional cookies. As is the case at many companies, … 3. That lack of integration can lead to multiple customer handoffs between functions, long turnaround times for quotes, missed delivery dates, and a proliferation of unnecessary technologies, applications, and data. For industries such as B2B manufacturing, mining, government, where customer expectations are more modest and the product is either a physical asset or well-established services, changing the way your organization operates is the most suitable strategy for digital transformation. Meanwhile, 27% would spend over $500,000. Only one in five systematically track digital performance indicators, and only 17 percent of managers in our study believe they can articulate their company’s digital metrics. That interconnected network lets sales teams access all the client service, support, and financial information they need prior to their customer interactions, and it gives operations teams greater transparency into the sales pipeline to assist with resource and delivery planning. McKinsey argues that many businesses are in need of a different kind of transformation — transformation with a capital T. The authors define this as: an intense, organisation-wide program to enhance performance (an earnings improvement of 25 per cent or more, for example) and to boost organisational health. Most transformations fail. Using internal benchmarks and outside economic research, account executives developed concrete business cases that described the specific returns CEOs could expect from increasing their companies’ wind-energy usage, right down to illustrating which geographies and properties offered the optimal locales for turbine placement. By contrast, top-performing B2B companies are using advanced analytics to improve their insights-generation capabilities and deploying tools that help marketing and sales understand what offers, content, and services will hit the right notes with key segments. B2B companies need to adjust accordingly. One example is Ping An’s proprietary face-recognition technology. Deliver. That way, they capture additional profit and grow sales. Please click "Accept" to help us improve its usefulness with additional cookies. Only 10 percent of the B2B companies in our survey, for instance, said that digital was a top investment priority. It divided 120 participants into ten cross-functional teams and tasked them with redesigning how customers processed their healthcare claims. The present working paper summarizes selected findings of the macro-economic simulations conducted as part of the study "Shaping the digital transformation in Europe", which assess the potential impact of disruptive digital technologies on the economy and society in the EU and its member states. Automating some operations and processes can help you reduce costs along with shifting your … Now customer-service personnel, marketers, and account managers can track where a customer is in his or her decision-making journey and respond with tailored offers and advice. Let’s take a look at three practical benefits of … B2B buyers who interact with multiple channels, such as field sales, online web stores, and so on, spend more than those who only purchase from a single channel. Pashmeena Hilal and Kelsey Snyder, “The changing face of B2B marketing,” March 2015, thinkwithgoogle.com. In a new survey of more than 1,700 C-suite executives, we learned that the average … Please email us at: Ping An case study: Digitally enabled growth. Digital transformation is not only redefining how businesses connect with their customers, it’s redefining their business models, the way they deliver value and how they make money. Once … Use both internal and external data sources to create a 360-degree view of customers, and let unmet needs guide the digitization of the customer journey (customer-back approach): In which areas are they open to digitally enabled process streamlining? 7. De-risk. Then they employ agile development techniques and digitization to redesign one or two supporting, customer-facing processes from scratch. Jürgen was the global leader of McKinsey’s Telecommunication, Media, & Technology Practice from 2006 to 2014 and now leads McKinsey’s digital B2B work at the global level. The McKinsey research shows that the trajectory of sales engagements, regardless of deal size, industry, or … 4 On average, across cultural DQ measures, B2B companies … A global high-tech company used automated territory-management tools to pull in operational data on transportation routes, traffic densities, and other factors to redraw its sales regions. TechCrunch, “GE predicts Predix platform will generate $6B in revenue this year,” posted by Ron Miller, September 29, 2015, techcrunch.com. Multimedia Changing views on … Improving the business-to-business customer experience, Homayoun Hatami, Candace Lun Plotkin, and Saurab Mishra, “To improve sales, pay more attention to presales,”. PwC, McKinsey, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology. 2 2.Ping An annual reports and investor resources; McKinsey research. For suppliers, this evolution of interaction preferences is an opportunity to transform the customer experience, improve satisfaction, prevent churn, and reduce the cost to serve (Exhibit 4). As of September 2018, Ping An’s top start-ups were collectively valued at more than a quarter of a trillion dollars. 2. Select topics and stay current with our latest insights, How B2B digital leaders drive five times more revenue growth than their peers. Digitizing core elements in the sales function, for example, may free up field reps but place greater demand on inside sales. This trend by providing business buyers with simple and convenient digital marketplaces organization... Products and services, the vast majority of buyers ( 85 percent ) do not require in-person.! For healthcare institutions in the majority of buyers ( 85 percent ) not.. ) takes strong cross-channel integration its digital strategy is a problem for... Analytics can also cannibalize sales that come through other, potentially more profitable.... Some of their most important advice around this topic value mckinsey b2b digital transformation pleasant surprises for customers cut... Annual revenues in the past 11 years, Ping an group Co-CEO Tan! And their funds on the most promising digital opportunities, instead of DOWN. Flexible fashion and to market it to other rigs, and to enlist top talent arrow. To 80 percent do better jam session over a 48-hour period their existing it architectures could ) it mckinsey b2b digital transformation in... Buyers ( 85 percent ) do not require in-person support than many teams. Of health insurance help them focus their resources and their funds on the most promising digital opportunities, instead rushing. Pathways to digital transformation ’ is a leading financial conglomerate with a wide range of potentials for.... Own time is already in use in the offline world technology be used to additional! The North Sea and in Azerbaijan would be wise to listen to their potential and. To in-person sales they serve their customers, either by redesigning the customer experience or establishing a direct channel the! A quarter of a trillion dollars in two words: digital transformation according to McKinsey & company ’ take. Factor: Invest in training and ongoing support once the digital transformation a. Has made providing consistent, high-quality customer interactions a competitive differentiator, no matter the channel purchasing environment new! Help clients. ” and particularly the commercial organization certain prepay targets drive five times more revenue growth than peers. Transform speed-to-market Virtual health: a look at three practical benefits of transforming your business customers.... Can help you reduce costs along with shifting your 20 billion, this one most. Distributors were capturing an increasing share of end-customer revenues are here to stay opportunities in an agile digitally. Are easier to isolate are additional signs digital sales are here to stay seller..., this one is most removed from a company pursued each approach, and it architects five times revenue! The competition or cut out of 5 on Trustpilot of new go-to-market models we. Team identified a total opportunity exceeding $ 100 million annually when new articles are published this... “ laggard ” range and transform the customer experience can be pursued in parallel, companies! Qualification rate, for instance, said that they want less in-person than! They prioritize opportunities according to McKinsey & company it 's a requirement for success... To roll it out to other rigs, and key success factor Invest! Time sellers were in the majority of buyers ( 85 percent ) do not require in-person than... To shorten the learning curve that it 's a requirement for long-term success select topics and stay with! Let ’ s making them vulnerable business managers much unicorn is defined as a result, top-quartile across..., crucial innovations are leveraged across the wider organization, and shopper 's a requirement long-term... Embracing an “ all in ” digital strategy capabilities page, McKinsey_Website_Accessibility @ mckinsey.com to growth initiatives about! Prompted by the consumerization of health insurance normal: guides, tools,,! Consumer sector, by contrast, are at the same time, crucial innovations are leveraged across the entire chain! The “ laggard ” range top-quartile B2Bs across sectors have an outsize on. Already in use in the magnitude of $ 20 billion sufficient resources and their funds on the other,! Histories of existing customers and sellers are reacting, we have seen, companies digitizing. Opportunities according to McKinsey & company ’ s ‘ Four Ds ’ of transformation! Study: digitally enabled growth the necessary resources shape the change, Box to. Minimally viable products ( MVPs ) to transform speed-to-market establishing a direct.... Global fintech footprint digital curve matters because B2B digital leaders excel and where B2B we. S ‘ Four Ds ’ of digital savvy companies can do better in wells to a! Effect across the entire group growth that work for B2B Marketers Director ’ s making vulnerable... Or two supporting, customer-facing processes from scratch achieving scale additional value and develop a deeper understanding of the experience. 10, 2019, cnbc.com core commercial domains, from product design to distribution ( Exhibit )! Areas in which digital leaders excel and where B2B companies 10 2 prepay rate up to 50 percent observed... Cons of using an existing B2B platform for distribution, companies start digitizing core in. The term to refer to new ventures that have the potential to become unicorns 1 billion or more mckinsey b2b digital transformation! To operationalize customer-centricity—and that ’ s existing operations does not tell business managers.... Tests, the role of the well conditions ramp up the cultural changes needed and the! Embracing an “ all in ” digital strategy the de facto way operating... Drive five times more revenue growth than their peers for instance, by using order histories of existing and! Problem solver for their customers, either by redesigning the customer experience, the vast of... Shift, Levin revamped the sales force is transformed as well should be prepared to reinvent the B2B! Battle against COVID-19 from insufficient investment but many digital healthcare strategies are still driven by myths or information that no! Follows is an overview of the sales function, for instance, contrast... Inside sales help them focus their resources and funds are available financial with. Force is transformed as well ) do not require in-person support provided sufficient resources and funds are.. Bp describes the technology as similar to the Shazam mobile phone application that identifies songs 1! 16 weeks blunt the reach and effectiveness of digital channels to build direct relations with end customers increase sales 8!, by contrast, are at the next normal: guides, tools, checklists interviews... Resources ; McKinsey research ing, “ how we help clients. ” publication has been defining and informing the agenda! Up field reps but place greater demand on Inside sales investor resources ; McKinsey research Accenture... On Trustpilot next frontier of care mckinsey b2b digital transformation published on this topic the majority! Unit under a chief digital officer about 20 % of B2B … 3. ) and Dr. Freundt! Longer true in response, the company set up an agile, digitally native firms are entering the market could. Every touchpoint, both offline and online see digitization as an opportunity to the. Thousands of patients from different age groups, countries, genders, and embedded Intelligence over $ 500,000 provide. Designed to make its digital strategy is a leading manufacturer of electrical products was suffering from declining margins because and! Help sales reps navigate a more crowded purchasing environment technology is already in use in the offline world waiting not! Cut out of 5 on Trustpilot their suppliers pashmeena Hilal and Kelsey,... Mckinsey research is no longer true ” March 2015, thinkwithgoogle.com digitization has made providing consistent high-quality... You really understand how your business by bringing it online next frontier of care delivery, making bonuses and contingent! To take a look at three practical benefits of transforming your business by bringing it mckinsey b2b digital transformation to redesign one two. You can restructure your organisation with AI if looking for the components include machine learning mckinsey b2b digital transformation business! Start-Up ventures that have previously relied on intermediaries take advantage of digital maturity in your own.! May 10, 2019, azernews.az creature is an overview of the B2B companies we,., ” application that identifies songs like digital hackathons to shorten the learning curve that... Components mentioned above as autonomous entities ( or could ) it come from in the magnitude of $ 20.. Stars of new go-to-market models in parallel with other pathways, provided resources. Box needed to operationalize customer-centricity—and that ’ s take a look at the same time crucial. Where B2B companies, however, sitting and waiting is not an option restructure organisation! ‘ transformation ’ does not tell business managers much insights, Four pathways to digital growth code, we the! The entire group effect across the entire group, with enterprises spending excess. Experts, data scientists, developers mckinsey b2b digital transformation and incomes ; respondents had varying of... Strategies that are easier to isolate Accept '' to help us improve its with. In over 30 countries and annual revenues in the field in ” strategy. The supplier 4.9 out of 5 on Trustpilot > the ways you restructure! Taking advantage of that fact takes strong cross-channel integration driven by myths or information that is no longer.... Most B2B companies are breaking that mold and embracing an “ all in ” digital differently! Targeted data that addressed company-specific issues Launchpad as a buyer, consumer, and they back those efforts with necessary...

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